so I first heard about bit coin about... 6 years ago or something like that
http://blockchain.info/block-index/1Height 0 (Main Chain)
Timestamp 2009-01-03 18:15:05Yeah, something like that...
Bitcoin has not yet expanded to it's mature market size. And unfortunately it has to start at 0 value, so what you are seeing is a rapid expansion phase.
The difference between inflationary and deflationary currencies, one has an economy because people are biased to use their money value quickly before it dissipates so the economy growth is falsely inflated, the other type of economy exists because people choose carefully and reluctantly the best and most important products and services to spend their money on so it is somewhat more appealing.